NEWSFLASH – Style & Imprint join forces

Filed under: Printing, Small Business — Tags: — trevor @ 08/07/2010 8:28 pm

July 8 2010

We are pleased to announce that Style Communications and Imprint have joined together, both print businesses have served the Mona Vale community over a long period.

Style and Imprint have always offered unique value propositions to customers which has allowed both to grow and prosper. With this move we believe we are able to offer our combined customers more value from one convenient location.

Rob from Imprint brings alot of knowledge about offset and volume printing. Rob will be concentrating on managing key accounts and servicing customers. Shayna is an expert in marketing for small to medium business and provides quality advise on how to use print, design and signs to maximise sales. Together we make a great team which ultimately benefits our customers.

We will continue to keep the Imprint shop open for a short so we have time to make sure all customers are aware of the change and can easily find us.

Shayna and Rob both own a share in the new enterprise which continues to trade under “Style Communications”.

Simple negotiation tips

Filed under: Small Business — Tags: , , , , — trevor @ 03/04/2010 3:05 pm

This post describes three simple steps that small business owners can follow to improve their outcome in a negotiations.  Negotiation is important because its a process in which decisions are made and conflicts resolved. Most large financial transactions will involve a negotiation and improving your skills can lead to a better outcomes for your business. A good deal for both parties can lead to strong mutually beneficial relationships with customers, employees and suppliers.

Examples of common negotiations you will have in a small business that if done poorly can make or break you.

  • employee performance reviews
  • bank financing
  • large customer deals
  • long term supplier deals

1) Plan your negotiation strategy

The process of planning for a negotiation is the best way to improve your outcome. Planning is understanding what you want to achieve and then deciding on the tactics you will employ to get your desired outcome. Its important to note that you can not expect your plan to eventuate during the negotiation so expect the unexpected. Often the best results come from difficult situations where both parties throw out the rule book.

Understand the mental model you take into a negotiation.

  • What is your view on the likely outcome?
  • How do you like to negotiate? (hard-ball vs cooperative)
  • What do you expect from the other side?
  • What is the likely level of competition / cooperation?

All your assumptions about these questions will impact the way you negotiate and potentially the outcome. Eg if you go into a negotiation using hard-ball tactics its likely the other side will adopt the same strategy the outcome will be based on who has the most power. From a small business perspective this would not be ideal.

What should your planning session aim to address?

  • Awareness of your mental model above.
  • Who are the participants in the negotiations?
  • Bargaining mix – the tradable items up for negotiation, be creative because you may have something highly valued by the other party
  • Targets in terms of best and worse outcomes.
  • The bargaining tactics you plan to use.
  • What are your priorities in the negotiation.
  • What opportunities exist for mutual benefit

2) Search for win-win outcome

Win-win outcome is often talked about but really achieved. The approach should be one of cooperation or problem solving where each side assist each other to reach each other goals. This process involves discovering peoples needs/interests which underlie the stated issue or position.

The concept is best explained through the following:
Two kids want the same orange, neither will accept an orange cut in half. Upon discussion it turns out that one seeks the orange rind to make marmalade, while the other wants orange juice.

Its only through open communications and discovery of underlying interests a win-win outcome is possible. Win-win negotiation can not be fixed pie, therefore the aim is to increase outcome for both sides. Win-win negotiations are possible and can lead to longer term relationships.

One approach to win win is principled negotiation from Fisher and Ury “Getting to Yes”

  • Separate people from the problem
  • Focus on interests not positions
  • Invent options for mutual gain
  • Use mutually acceptable objective criteria measure fairness
  • Sidestep attacks

Win-win negotiations are only possible when both negotiators are looking for mutual gain. If one party holds a fixed pie assumption and only after the maximum slice of the pie its difficult to have open approach.

3) Improve your BATNA

Best Alternative To Negotiated Agreement (BATNA) – the concept is simple you will improve your outcome by having a strong alternative agreement which you can take in the event of the current negotiation failing.

Therefore you should always pursue more than one option when negotiating with parties. The strength of this alternate agreement becomes the point at which you walk away.

This blog is aimed at providing practical advice to small business owners. Style also offers specialised marketing and printing advice to our customers aimed at improving your bottom line.

Understand your product or service

Filed under: Marketing, Printing, Small Business — Tags: , — trevor @ 28/03/2010 2:50 pm

Alot of effort is required to effectively promote a product or service so its really important that you understand what you are actually selling. Only when you understand the core reason people are buying your product or service that you can use marketing technique to increase demand. This post is highlighting the importance of understanding your core product for small business, because small business needs to maximise its investment in limited marketing budgets. This concept is best illustrated with a simple example below.

Why does a customer by a drill from a hardware store? Not because they want to own a drill , it is because they need a hole in the wall.

Generally a product or service can be broken into 3 levels,

Three product levels

Three levels of product or service

  • Core benefits or service  - this is what the customer is actually buying. Its the problem solved or benefits the customer gets when they buy the actual product or service. In the example above its the ability to create a hole.
  • Actual product or service – is generally the product or service purchased by the consumer. In the example above its the actual drill purchased from the hardware.
  • Augmented product  - these are customer valued extras which are designed to add value to the customer. Examples of augmented products include warranties, customer services, trading terms, delivery, installation etc.

Most small businesses understand actual and augmented product but take the core benefit for granted. This results in marketing effort concentrating on the benefits of the actual product rather than addressing the reason people are buying the product.

Customers tend to see products or services as complex bundles of benefits.

Why should you even care?

Its important to understand all this because combined it is your value proposition to customer. Most competition these days is around the augmented products and services it is where companies create a competitive advantage.

Also it is easier to increase demand for a product or services if you understand the core benefit your customers expect to get from buying your product or services. Marketing should be targeting the core benefits and augmented products because these are where customers will decide how to spend their hard earned.

Case Study: Style Communications

The following diagram is used internally as a way to clearly communicate to our staff the business we are in and how we add value to our customers.

Style value proposition

As this diagram shows the products we sell are in the ring surrounding our core benefit which is solving our customers communication needs. Print related materials is all about communicating and we are experts in this area. We believe our competitive advantage comes from the outer circle because this is how we add more value to our customers than the competition.

Its clear to us where we need to

  • Spend our marketing budget
  • Develop our staff
  • Invest in our product
  • Why our customers choose us over our competitors.

At Style we understand our products and why you need them. We can also help you understand your product or services and develop a unique value proposition for your customers.

How can small business use marketing?

Filed under: Marketing, Small Business — Tags: , , — trevor @ 21/03/2010 2:02 pm

The marketing process is typically what “marketers do”. This post attempts to explain the marketing process for small business who can not afford the luxury of a specialised marketing resource. Most small businesses are performing many tasks considered marketing without realising it.

A market is defined simply as a place where sellers and buyer come together to exchange goods and services. Your market is where you compete for customers.

The typical marketing process

  • analysing market opportunities – this involves looking for a niche market where your small business can compete and dominate. This may be a new product, geographic location, special service. If you are in a small business chances are you have already selected your opportunity. If your business is struggling to compete for any reason it may be time you start looking for another market in which you should devote your time.
  • selecting target markets – within any market there are sub-groups of customers, therefore it is the role of a business to select which target market to concentrate its efforts on. Remember it is not possible to be all things to all customers so you need to focus on where your business has its greatest competitive advantage. By selecting smaller number of target markets a business can focus its product, services and marketing directly at these smaller customers segments.
  • developing the marketing mix – this is the day to day activities of marketing and the topic of this blog.
  • managing the marketing efforts – there is no point in investing in marketing if you are not prepared to track and measure how that investment has performed.

Marketing segmentation

This is the process of dividing a market into direct groups of customers who might require separate product, services and marketing mixes. There are a number of ways to group customers including geographically, demographically and behaviourally. The process of segmentation is important for small business who should be focusing efforts of the group which is most profitable. The scatter approach rarely works and tends to confuse customers.

The result of market segmentation is the “target market” which becomes the focus of your marketing mix.

The Marketing Mix

The marketing mix is the elements controllable by your business which attempts to get your target market to buy your product or service. This is what you control to increase demand for your product. Remember a marketing mix will have no impact if you do not have a market to begin with.

Four P's of Marketing

The marketing mix

Four P’s of the Marketing mix

  • Product or service – these are the goods or services being offered to the market.
  • Price – the amount customers have to pay to obtain the product or service
  • Placement – these are logistics and marketing actives concerned with making and distributing the finished product or service
  • Promotion - activities that communicate the benefits of the product and persuade target market to buy it.

Some marketing professionals advocate extending the 4p’s of marketing to include

  • People – important for small business where you and your employees have more direct influence over a customers experience with your company. This would be considered one of the advantages of small business over larger businesses.
  • Process – not just the process of making the product but the experience using it.

Often small business think marketing is all about “promotion”. Promotion is only one of the levers you control to increase demand for your product.

The most effective marketing involves looking at all 6 and considering what strategy you will use to increase demand for your products.

At Style we can help you with placement and promotion. We have a service designed to provide you with practical marketing tasks which you can use to put your product or service in the best place and sell the benefits of using your product or service follow link.

Build profitable customer relationships

Filed under: Marketing, Small Business — Tags: , , — trevor @ 28/02/2010 2:16 pm

The key to building profitable relationships is to retain customers as it is far more difficult and expensive to get new customers over servicing existing customers. Small business owners should be developing strategies aimed at retaining customers.

The long term perspective towards building customer relationships which aim not to have one successful transaction with a customer but many will be far more profitable for your business.

How do you retain customers?

  1. Don’t over promise in marketing
  2. The expectations customers have (the value they expect) effects their satisfaction and if they decide to come back. Therefore satisfaction depends on your product or service relative to the buyers expectations.

    Your marketing materials and branding should accurately reflect your product or service performance. Over promising and under delivery will only lead to dissatisfied customers who will not return.

  3. Know which customers provide the greatest value
  4. Its not possible to pursue and satisfy every customer, the trick is knowing which customers or market provides the greatest business value and servicing that customer or market. This is the similar concept to finding your businesses niche in the market and concentrating on servicing it better than everyone else.

    You can not be all things to all people so find your place and go for it

  5. Provide superior Customer Service to key customers
  6. Customer service involves going above and beyond what customers expect. Live by the saying “the customer is always right”. Alot can be found on how provide superior customer service so it will not expand in this blog . Remember that some companies sell products or services where superior customer service is not expected eg compare Aldi to Coles.

  7. Build Loyalty
  8. You should be looking to provide a reason that your customers should keep returning.  The loyalty marketing techniques used depend on the product, service and market in which you operate. At Style we have used loyalty cards, trading terms and targeted direct mail specific to the customer.  At Style we can provide you assistance to use the right technique for your product, service or market.

    Also remember that not every customer want a relationship with your business.

At Style we can help you build profitable relationship with your customers through our knowledge of marketing solutions.

Persuasion – a key skill in business

Filed under: Marketing, Small Business — Tags: , , — trevor @ 25/10/2009 12:30 pm

This article will list key techniques used when persuading people. Persuasion is a skill that all business people need to develop in order to become more successful.

When is persuasion used in Small Business?

Persuasion is a important skills that most successful business people have and develop without even realising it. All the situation below require the skill of persuasion.

  • Persuasion techniques are used heavily in the sales process – It good to know when these techniques are being used on you.
  • Managing staff
  • Working with peers
  • Dealing with banks

Persuasion or influencing techniques

I am highlighting these techniques to point out not only so you can use them but also to recognise when they are being used on you. These techniques come from a famous management book written by Robert Cialdini called “influence”.

1) Perceptual Contrast - this is a highly effective technique used in the sales process. When we make decisions, we tend to do it by contrasting between the decision item and reference items. When two things appear close to one another, we will tend to evaluate them against one another more than against a fixed standard.

Using it in the sales process

To make something look good, first show something of inferior quality. To get someone to buy something expensive, first show them something even more expensive.

Defending against it

When you make a decision, think about the comparison standards you are using. If it is something you have recently seen, consider whether the person who showed you the first thing is using it for the contrast effect.

2) Rule of Reciprocity – firmly states that we are all bound, even driven, to repay debts of all kinds. It is an almost automatic reaction.

Using reciprocity

The formula for using the Rule of Reciprocity to your benefit is simple: Give something away – a gift, a service, valuable information, assistance, or anything – to create in the other person a feeling of indebtedness. Once the other person feels indebted to you, then you ask for what you want and let the “Rule of Reciprocity” go to work.

Defending against

Accept initial favors or concessions in good faith, while also remaining prepared to see through them as tricks, Once seen in this way there is no longer a need to feel the necessity to respond with a favor or concession.

3) Commitment and consistency – people have a desire to look consistent through thier words, beliefs, attitudes and actions.

Using commitment and consistency

The formula for using this technique is the “initial” commitment. After making the commitment most people will be able agree to requests that are consistent with the initial commitment. Once a stand is taken, there is a natural tendency to behave in ways that are stubbornly consistent with the stand.

Defending against

To recognise and resist the undue influence of consistency pressures require listen for signals and the ability question the initial commitments.

4) Social Proof – this is one way in which people determine what is correct by finding out what others believe is correct.

Using social proof

Social proof is most influencial under two conditions:

  1. Uncertainty – when people are unsure and the situation is ambiguous they are more likely to observe the behavoiur of others.
  2. Similarity – people are more inclined to follow lead of other who are similar.

Defending against

You need to be sensitive to counterfeit evidence, that is what others are doing or their behaviour should not form sole basis for decision  making.

Using it
To make something look good, first show something of inferior quality. To get someone to buy something expensive, first show them something even more expensive.
Defending
When you make a decision, think about the comparison standards you are using. If it is something you have recently seen, consider whether the person who showed you the first thing is using it for the contrast effect.

How to create a strategy

Filed under: Small Business — Tags: , , , , , , — trevor @ 20/06/2009 12:17 pm

This post is a guide for how small business could approach creating a strategy. This is only one example there are many other ways to approach creating a strategy. This is a simple guide designed for small business owners.

I have another post on “What strategy means for small business” which explains what strategy is and is not. That post also covers the three main theories for strategy.

The objective of creating a strategy is to create a sustainable competitive advantage to keep the business either;

  1. In a niche  market with no or little competition, the creative part is finding and keeping this new or unpopulated area in the market to make sustainable profits.
  2. Develop superior capabilities abilities to dominate the market in which you compete,  the creativity comes with understanding how to add more value to customers over sustained periods.

I will make this post a list even though the reality of this strategy creation  process is that its not as simple as a list of tasks to follow. Strategy is effectively a creative process, but before creation you need to understand the context in which your business operates. The other point is this process should involve as many of your staff as possible.

Step 1) – Simple SWOT

I like to start with a simple SWOT. SWOT stands for strengths, weaknesses, opportunities and threats. SWOT is a good starting point because the concept is simple to understand and you can quickly get both and internal and external view of the business.

  • Strengths – are the internal capabilities that you excel at
  • Weaknesses – are the area you need to improve, be honest with yourself, if you have no where to improve then you have less room for growth
  • Opportunitiess – are external market based situations which the company could take advantage of.
  • Threat – are external things that may impact the company.

Successful businesses build on their strengths, correct their weaknesses and protect against internal vulnerabilities and external threats. They also keep an eye on their overall business environment and spot and exploit new opportunities faster than competitors. SWOT analysis is a tool that helps many businesses in this process.

Step 2) Porter 5 Forces

To understand the market in which you operate a great analysis tool developed by Micheal Porter is called the 5 forces model. This model will help you identify if you are in a market protected from strong competition or a market with high competition. This model provides a useful snapshot in time therefore  to remain relevent you must revist your porters analysis regulary.

For more detail on porters five forces

Step 3 ) Customer Analysis or Market Segmentation

I use customer analysis to understand existing customers where as I use market segmentation to understand new or potential markets.

Customer analysis provides a real insight into the current customers of the business, this group of people will make and brake your business so you better know them well. I like to classify customers in terms of the following

  • Customer Type – a grouping that makes sense
  • Whats they buy from you – the products or services this group of customers buys from the company
  • What they are worth the the company – The 80/20 rule is that 80% or revenue comes from 20% of customers. Its important to focus your attention on the customer who generate the most profit or potential profit for you.
  • What is the company value proposition – why does this group of customer come to your business rather than your competitors.
  • Leave a blank column for what strategic tactics will address the needs of these customers.

After finishing this analysis of the customer it becomes clear what the existing customer think of the company. The trick hear is not to only focus on existing customer, Existing customer are in existing markets therefore you must also think of new types of customers or additional products.

Market segementation looks at categories of customers within the market as opposed to customer of the business. This is done by classifying the segment using the following criteria.

  • Classification – grouping of the segment
  • Reasons to choose one competitor over another – list of things the segment values
  • What are they primarily driven by – what primarily drives the decision making this is generally in one of  price, quality, service, convenience , relationship etc
  • Demographics & Psychographics – what is the unique characteristics about this group of people.
  • Most likely choice – who would they choose to supplier the goods or service they require

The information you get from a market segmentation is the where you should position yourself, because the main point to remember you can not be all things to all people.

Step 4) Competitor Analysis

This step is important if you compete in a crowded market. Understanding competitors can give you insight into there strengths and weaknesses.

  • Competitors Name
  • Location or proximity – how close are they in terms of ability to sell to your customers
  • Products offered – what products or services do they offer
  • Competitive Advantages – what is the competitive advantage of this competitor
  • Target market – who are they chasing
  • Threat level – how concerned should you be about this group.

The idea behind understanding your competitors is to know what is being done in you market but more importantly what customer needs are not being addressed these become your opportunities.

(more…)

What does strategy mean for small business?

Filed under: Small Business — Tags: , , , — trevor @ 19/05/2009 4:34 pm

Strategy comes from the greek word “Strategoes” which means military general. Therefore the word dates back to directing the troops in battle. This analogy is quite useful in describing a leaders role in guiding their business in a competitive environment.

Why worry about Strategy if you own/run a small business?

  • Strategy provides direction, essentially its a plan.
  • Strategy gives staff something to follow.
  • Allows the owners to step back and take a helicopter view, work on rather than the business

The process of creating a strategy will provide an owner a great insight. Often small business owners don’t think they need a “strategy” because they know exactly where they are going , great that is a strategy.

What a strategy isn’t!

  • not done every three years for the next three years.
  • not fixed in any way.
  • not a document – although writing down strategy is beneficial
  • not done without involving staff, customers and competitors in some way.
  • not only long term goals

Most definitions of strategy based around “plan for the future” but they are also “patterns from the past”.

Over the past few years there has been a number of theories on the best way to develop strategies. I think the best way to develop strategy depends on the situation.

  • Micheal Porters developed the five forces model which is an external view of how to develop strategy. Look at your externally to find a place in the market which you can dominate. This method is useful in static industry where competitors are well known.
  • Barney, Collis and Montogomery  (resources based view) and others believed that strategy was best formulated by looking internally at what is your core competitive advantage. This view is better where resources are the key to success.
  • Teece, Pisano et all – described that strategy should be engineered into the business in the form of “dynamic capabilities” that are able to adapt to rapidly changing environments. This view is better is rapidly changing industries like technology.

The point is it does not matter how you think about strategy, its only important that you do.

Have created another post with a small business guide to developing a strategy

How to – Survive the financial crisis (GFC)

Filed under: Small Business — Tags: , , , , , — trevor @ 08/05/2009 9:02 pm

This post will provide a number of simple tips (in order of importance) to help small businesses survive  the current financial crisis. The main piont is that the financial crisis is short term and that by surviving it your business will be stronger over the long term.  

Tip 1) Cash is the number one survival tip

Cash flow is the life blood of the business world, too survive small business needs cash. There are many examples of profitable small businesses who go out of business because they have a short term cash problem.

The following checklist is designed to ensure you have enough cash to survive.

  • Go to the bank and organise a line of credit just to be safe. This must be organised before you run out of cash.
  • Keep a close eye on accounts receivable. Companies use accounts payable as free credit and therefore will delay payment. Chase outstanding debts early. If a customer value your product or service they will not have a problem meeting your payment terms. If you have a small number of customers this activity becomes even more important.
  • Offer discounts for advanced or early payment . A simple Net Present Value (NPV) calculation can provide you with what your accounts receivable (debtor balance) is costing you.
  • Use payment terms offered from suppliers, as pointed out above its free finance.
  • Increase the limit on your business credit cards, avoid using credit card debt because of the cost but they can be useful in emergencies.

The key point is that you need enough cash to pay your debts when they fall due, if you don’t nervous creditors (especially banks) will have no hesitation in bankrupting you.

Tip 2) Spend time on your business not in it

Small business owners often get tied up dealing with the day to day running of the business and do not dedicate enough time thinking and planning about what they want from there small business.

Below is a practical list of ways you can spend time working on your business.

  • Develop a business plan, the process you need to go through in a business plan gets you to think about your business in a reflective way which helps you identify areas for improvement.
  • Formulate a strategy for the next 3 years, I admit a static strategic plan is of limited value becuase they represent the situtaion on the day they were created and tommorrow everything may change. I like to do a strategic plan on an intranet site that defaults as my staffs home page and update the plan with input from staff regularly. The strategy should address the following areas.   (I will create detailed post on creating strategy for small business). 
    • What are your personal goals?
    • SWOT analysis – Strengths, Weaknesses, Opportunities and Threats.
    • Competitor Analysis – what are you competitors doing? – mini SWOT on each of them.
    • Customer Analysis – who are your customers?; why do they choose you over the competition?; How should you approach them
    • This leads to number ways of competing  
      • Compete on price – lowest cost, deepest pockets generally wins
      • Compete on value – this involves developing a unique position in the market and creating exceptional value
      • Compete on quality – works in premium markets
      • Compete on service – works on customer convenience
    • The key to strategy is that you can not be all things to all customers you need to focus on where you have a competitive advantage.
  • Formulate a marketing plan for the next 12 month. At Style we help small business develop marketing plans and one part of our strategy to add more value to our customers.

Tip 3) Financial crisis can be viewed as an opportunity

The current crisis can be seen as an opportunity to go into new or different markets because competition is reduced or the landscape has changed.

There is a concept in economics from Joseph Schumpeter called “creative destruction” it describes how during hard times is when opportunities arise. The problem is you need to see above the current crisis to view the opportunities. 

A few examples

Join forces with one of your competitors, when times are good and both companies making modest return neither would be willing to join forces. The result of a properly designed merger should be increased economies of scale resulting in better returns for both parties.

New position in the market becomes available for a new product or service.

If you have the funds invest in new technology and infrastructure now. Resources are available and cheaper at the moment. When the good times return you will be well placed to ride the wave with your new technology or infrastructure. Also locally in Australia the government has provided some significant tax breaks.

Perfect opportunity to negotiate new deals with supplier for long term contracts and lock-in lower costs. 

Re-negotaite a reduction in rent becuase your landlord will be keen to keep you, this may be difficult.

Tip 4) Drive revenue up

Increasing revenue sounds obvious but most small business focus efforts on cutting costs which actually drives revenue down because costs drive revenue. Now is not the time to cut on advertising, marketing, exhibitions and sales staff because all these costs drive revenue.

At Style we can help you with your marketing.

Tip 5) Cut costs that don’t add value

The focus should not be on cutting costs to maintain a profit or break-even level because this type of short term cost cutting is the beginning of the end. The following is examples of costs I would be careful in cutting.

  • Staff costs – for small business staff are the key. If you need to reduce them why not ask each of your staff to cut back 1 day a week. This works out better for staff and the business.
  • Advertising costs – if anything I would be increasing as long as you can gauage how effective you advertising spend is – topic of another post
  • Marketing costs – drive new business
  • Customer service – drive repeat business
  • Quality control – maintains quality
  • Production costs – maintains quality
  • Training costs – keeps resources productive

That does not mean that you should not be looking at each cost closely asking what it adds to value in the final product.

Costs which should be looked at closely

  • Telephone expenses
  • Technology expenses
  • Motor vehicle expenses
  • Finance costs – if you have security now is a gret time to secure low rate finance.
  • Travel expenses – although careful with this

Hopefully this practical list of tips is useful and if anyone has any additional suggestions I would like to include them.

Technology for small business

Filed under: Small Business, Technology — Tags: , , , , — trevor @ 06/05/2009 9:55 pm

As a technology specialist and small business owner I am often asked the question “what technology should I invest in?“. The answer is generally it depends on the answers to the following questions.

  • What technology resources do you have?
  • What do you want to achieve?

Lately, technology options for small business has become alot more accessible because of the increased products delivering technology via  software as a service (SaaS).

Software as a Service (SaaS) is where an application is hosted as a service provided to customers across the Internet. By eliminating the need to install and run the application on the customer’s own computer, SaaS alleviates the customer’s burden of software maintenance, ongoing operation, and support. Conversely, customers relinquish control over software versions or changing requirements; moreover, costs to use the service become a continuous expense, rather than a single expense at time of purchase.

Therefore investing in SaaS allows small businesses to get the features and functionality normally only companies with significant resources can afford. SaaS allows small business to you use the software without the complex and expensive infrastructure requirements.

Below is a list of reasons SaaS makes sense for small business.

  • There is a lower total cost of ownership (TCO), especially important at the moment is lower upfront costs of the user pays model. 
  • Zero or low maintenance and upgrade costs.
  • In the current economic crisis owners like the pay as you go option. This is seen as less financial risk.
  • Extensive broadband penetration within the ANZ market.
  • Quick & Easy deploy – plug and play.
  • IT press has been hot on the topic for a number of years.
  • Certain SaaS vendors like Saleforce.com have reached such a size, with large numbers of customers that the technology is no longer seen as “risky”.
  • Big players are all developing product offering which have legitimised the industry. Eg Microsoft, Google, IBM, Oracle, SAP.
  • More incentive for software publishers to invest in the core product in subscription licensing vs perpetual licensing. This resulting in better quality products over time. 
Types of SaaS being used

Types of SaaS being used

What technologies should you look at?

The following list of technologies I have tested or used personally and are happy with. I am not affiliated with any of these companies other than being a customer.

Salesforce.com - is a Customer Relationship Management (CRM) system and is considered the largest SaaS company and most talked about when people refer to the SaaS industry. Salesforce.com was founded in 1999. I have been using Saleforce.com for 4 years and I think its an excellent product.

Netsuite - offer CRM, ERP/Accounting and E-commerce on-demand or SaaS product offerings.

Saasu.com – this is an Australian based company offering easy online accounting.

Google Apps – this is a messaging and collaboration tool for small business. We use this at Style after moving from a in-house managed Microsoft exchange server. Google apps provide a full list of features including spam handling.

For a full list of SaaS products by product and category I found this blog. Most of these product offerings are for micro to small business.

Full SaaS List by Melvin

Final points –  even though at Style we have the technical resources to go with either Software as a Service or software installed on our servers I much prefer the SaaS option because they are generally cheaper, less of my time, more features and more secure.

The one downfall with SaaS is if you want to integrate the system with another system integration is complex unless a plug-in has already been built. This would be a benefit on going with the larger SaaS vendors.

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